Palm extends losses on weak crude, firm ringgit, sluggish exports

Malaysian palm oil futures continued to decline in value on Monday, marking the second consecutive session of losses. This decline was attributed to a stronger Malaysian ringgit, falling crude oil prices, and a drop in exports, all of which created a less favorable environment for the commodity. The December palm oil contract on Bursa Malaysia Derivatives Exchange fell 41 ringgit, or 0.84%, to 4,857 ringgit ($1,191.90) per metric ton.

The previous day's decline was 0.77%. Market sentiment was further dampened by reduced market participation, as indicated by a decrease in open interest for the day, according to a trader based in Kuala Lumpur. Oil prices had dropped to their lowest level in 11 days, as investors speculated about potential diplomatic breakthroughs in the Iran conflict and anticipated a partial recovery in shipments from Saudi Arabia.

Palm oil's value is influenced by the price of competing edible oils, and a stronger ringgit, which makes the commodity more expensive for buyers using foreign currencies, also contributed to the losses. Cargo surveys estimated that Malaysian palm oil exports from September 1 to 20 decreased by 12.8% to 24.7% compared to the previous month.

Other related oil contracts also saw declines; Dalian's most-active soyoil contract decreased by 0.11%, while its palm oil contract dropped by 0.92%. Similarly, soyoil prices on the Chicago Board of Trade experienced a 0.45% decrease.